Bombay High Court Quashes Minister's Order in Co-operative Society Registration Dispute — Government Resolution Suspending Registration of New PACSs Held Binding on Appellate Authority. Minister's order set aside for ignoring Government Resolution dated 3rd December 2011 under Maharashtra Co-operative Societies Act, 1960.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioner, a member of an existing co-operative society, challenged the order of the Minister for Co-operation, Government of Maharashtra, dated 8th January 2013, which allowed an appeal by respondent no.1 (a proposed society) and directed the Assistant Registrar to register respondent no.1 as a co-operative society under the Maharashtra Co-operative Societies Act, 1960. The Assistant Registrar had earlier returned the proposal for registration on the basis of a Government Resolution dated 3rd December 2011, which suspended the registration of new Primary Agricultural Co-operative Societies (PACSs) until further orders. The Minister, in appeal, quashed the Assistant Registrar's order and directed registration. The High Court, exercising jurisdiction under Articles 226 and 227 of the Constitution of India, held that the Government Resolution was binding on the Minister and that the Minister could not ignore it. The court found that the Minister's order was passed without considering the Government Resolution and was therefore unsustainable. The High Court quashed and set aside the Minister's order and restored the Assistant Registrar's order dated 29th December 2012. The petition was allowed.

Headnote

A) Co-operative Law - Registration of Societies - Government Resolution - Binding Effect - The Minister for Co-operation allowed an appeal against the Assistant Registrar's order returning a proposal for registration of a new PACS, ignoring a Government Resolution dated 3rd December 2011 suspending registration of new PACSs. The High Court held that the Government Resolution is binding on the Minister and the Minister cannot ignore it. The Minister's order was quashed and set aside. (Paras 5-6)

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Issue of Consideration

Whether the Minister for Co-operation could allow registration of a new Primary Agricultural Co-operative Society (PACS) ignoring a Government Resolution suspending registration of new PACSs.

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Final Decision

The High Court allowed the petition, quashed and set aside the Minister's order dated 8th January 2013, and restored the Assistant Registrar's order dated 29th December 2012.

Law Points

  • Government Resolution is binding on the Minister
  • Minister cannot ignore Government Resolution
  • Registration of new PACSs suspended by Government Resolution
  • Minister's order quashed for ignoring Government Resolution
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Case Details

2014 LawText (BOM) (04) 57

WRIT PETITION NO.1747 OF 2013

2014-04-04

Ranjit More

Mr. A.Y.Sakhare, Sr. Adv. with Mr. R.N.Gite for Petitioner; Mr. P.N.Joshi for Respondent No.1; Mr. A.A.Kumbhakoni, Sr. Adv. with Mr. A.B.Vagyani, Addl. Govt. Pleader and Mr. S.D.Rayrikar, AGP for State-Respondent Nos.4 to 8

Nitin Prabhakar Bankar

The Saptasringi Mahila Vividh Karyakari Seva Sahkari Sanstha Maryadit, Pimpalgaon (B) and others

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India challenging the order of the Minister for Co-operation allowing registration of a new co-operative society.

Remedy Sought

Petitioner sought quashing of the Minister's order dated 8th January 2013 and restoration of the Assistant Registrar's order returning the proposal for registration.

Filing Reason

The Minister allowed registration of a new PACS ignoring a Government Resolution suspending registration of new PACSs.

Previous Decisions

Assistant Registrar returned the proposal for registration on 29th December 2012 citing Government Resolution dated 3rd December 2011. Minister allowed appeal on 8th January 2013 and directed registration.

Issues

Whether the Minister for Co-operation could allow registration of a new PACS ignoring a Government Resolution suspending registration of new PACSs.

Submissions/Arguments

Petitioner argued that the Government Resolution is binding on the Minister and the Minister cannot ignore it. Respondent no.1 argued that the Government Resolution is not binding on the Minister.

Ratio Decidendi

A Government Resolution issued by the State Government is binding on the Minister and the Minister cannot ignore it while exercising appellate powers under the Maharashtra Co-operative Societies Act, 1960.

Judgment Excerpts

The Government Resolution is binding on the Minister and the Minister cannot ignore the same. The impugned order passed by the Minister is unsustainable and is liable to be quashed and set aside.

Procedural History

On 18th December 2012, respondent no.1 filed a proposal for registration before the Assistant Registrar. The Assistant Registrar returned the proposal on 29th December 2012 citing Government Resolution dated 3rd December 2011. Respondent no.1 appealed to the Minister, who allowed the appeal on 8th January 2013 and directed registration. The petitioner filed the present writ petition on 4th April 2014.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Sections 4, 9
  • Constitution of India: Articles 226, 227
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